IN LAGOS: The European Commission has approved a €5 billion ($8.1 billion) German scheme to help companies in industrial sectors decarbonise their production processes.
The scheme contributes to achieving Germany’s energy and climate targets, alongside the EU’s sustainable prosperity and competitiveness objectives.
Eligible projects must involve fundamental technological changes and replace fossil fuels or raw materials with low-carbon alternatives such as electrification, hydrogen, carbon capture and storage, carbon capture and use, the use of biomethane, as well as heat and storage.
Projects will be selected through a competitive bidding process based on their cost efficiency, measured as the aid requested per tonne of avoided CO2 emissions. Projects must also deliver substantial emission reductions, including at least 50% within four years and 85% by the end of the contract period in 15 years.
Germany’s electricity generation
According to Energy Charts, in 2025 the share of renewables in Germany’s net public electricity generation totalled 55.9%. Wind power took first place as the strongest net electricity producer, followed by photovoltaics, which increased its production by 21% in 2025.
In 2025, the share of electricity generation from fossil fuels stagnated, with the decline in lignite-based electricity generation being offset by rising natural gas consumption.
Germany’s battery storage sector is also expanding, with several systems in operation and the market master data register listing an additional 11.5 gigawatts per hour with a planned commissioning date.
The capacity of ‘large-scale’ battery storage systems grew from 2.3 to 2.7 gigawatts per hour over 2025, as reported by Energy Charts.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash
